Sources: Trinity Industries Inc., Dallas; CP staff
A spinoff of assets outside Trinity Industries core Rail and Railcar Leasing and Management Services businesses has created Arcosa Inc., a separate New York Stock Exchange-traded company reporting 2017 sales of $1.5 billion across three groups: Construction Products, with 11 sand & gravel (Texas, Louisiana) and eight expanded shale and clay (Alabama, Arkansas, California, Colorado, Indiana, Kentucky, Louisiana, Texas) plants, plus Energy Equipment and Transportation.
Arcosa enters the public markets as “a strong, independent company with established businesses,” says CEO Antonio Carrillo. “A healthy, nearly-debt free balance sheet and strong operating cash flow provide us with significant resources to grow both organically and through disciplined acquisitions. Our stage one priorities are to grow our construction products businesses, improve margins in our energy equipment segment, and expand our transportation products businesses as our key markets recover.”
“Our name symbolizes the ‘arc’ of progress for our business and ongoing commitment to meeting critical infrastructure needs through innovation, entrepreneurship, and flexibility,” adds Carrillo, a 16-year Trinity Industries veteran. “We are committed to establishing credibility with our many stakeholders, including the investment community, customers and suppliers, team members throughout the organization, and the communities in which we operate.”
Leading the Arcosa Construction Products Group is Reid Essl, who transitioned from chief financial officer over the Trinity Construction, Energy and Marine businesses. Of 2017 Arcosa financials, Construction Products accounted for $259 million, or 18 percent of sales, and $54 million, or 41 percent of $132 million in operating profit. The sand & gravel and lightweight aggregate production portfolio includes legacy Trinity Industries plants, along with sites previously under Oldcastle Architectural/Big River and Texas Industries.